Recent Posts

On Monday, I noted that the underlying technicals of the market
had changed; more aggressive, "growth areas" of the market were
rising. Below are daily charts of (in order technology,
financials, energy and health care ETFs). Combined, these
four sectorscomprise 57%of
the S and P 500.

Technology (which accounts for 19.39% of the SPYs) is in a strong
uptrend. After consolidating in a symmetrical triangle,
prices have been moving higher. All the EMAs are rising and
the shorter are above the longer. The MACD is positive and
the A/D and CMF are all rising. Notice that over the last
four days, we've also seen a bump in volume.

Financials (which account for 14% of the market) are also
rising. However, add that they have (finally) crossed their
200 day EMA to the picture.

Energy is a bit behind the curve, as it it still constrained by
the highs of late October. However, prices are bumping up
along that line. Also note the positive underlying
technicals -- rising EMAs and volume indicators. The MACD
is not negative, but also not positive, which is obviously a
slight negative.

Health care (which accounts for 11.64% of the average) shares all
the above bullish points, save one: the MACD is about (or already
has) given a sell-signal. Yesterdays prices action, if it
continues, could change that development, but we need several
days of strong price action for that trend to
develop.